ALBANY – Attorney General Eric Schneiderman on Thursday said the retail chain Hobby Lobby Stores will provide gift cards to more than 700 schools in New York as part of a nearly $400,000 settlement.

It includes 108 schools across 18 school districts and charter schools in Monroe County. The company was accused of alleged deceptive advertising practices.

Schneiderman said the stores misled customers into thinking they were receiving discounts through deceptive advertising over a two-year period.

"When companies mislead customers by advertising never-ending sales, our office will hold them accountable," Schneiderman said in a statement.

"Ultimately, a permanent sale is no sale at all."

The company has agreed to change its advertising practices over the next 60 days and contribute $138,600 in supplies to public schools near Hobby Lobby stores in upstate New York. The company will also pay $85,000 in civil penalties.

The company will provide gift cards to school districts that apply to receive their portion of the settlement. It would be about $200 per school, if they all apply.

Hobby Lobby has 13 stores in the state, but the investigation started when the company had 10 stores. So school districts eligible for the gift cards involve schools within 10 miles of the 10 stores that were operating at the time of the investigation, Schneiderman's office said.

The stores were in Webster, Monroe County; Depew and Niagara Falls in western New York; Liverpool and Fayetteville near Syracuse; Elmira; Latham, near Albany; Poughkeepsie; New Hartford near Utica; and Middletown, Sullivan County.

Districts will receive a notification letter and will have 60 days to respond to claim their portion of the settlement.

In a statement, Hobby Lobby said it disagreed with the allegations, but were pleased to provide "an opportunity to contribute to the needs of teachers and schoolchildren in New York."

"We look forward to continuing to grow our business in New York state, and to providing excellent selection and value to our customers," the statement continued.

Schneiderman said the investigation began last year when his office received marketing materials from the stores advertising 50 percent off and 30 percent off sales.

But the problem, he said, was that Hobby Lobby advertised its custom framing, furniture and home décor products as sale items for more than 52 consecutive weeks.

Schneiderman charged that doing so violated state law on false advertising.